David Duffy

PIRC deems the package, which includes a £331,000 bonus, as “not appropriate” compared to the bank’s average employee salary of £71,804.

Expressing concern over the CEO-to-employee pay ratio of 37:1, PIRC contends that it exceeds the recommended limit of 20:1. Median pay figures suggest an even wider gap, with Duffy’s total payout approximately 66 times that of the median employee earning £40,254, according to Virgin Money’s annual report.

This critique comes ahead of Virgin Money’s AGM on 1 March, where shareholders will vote on resolutions related to the bank’s annual report and pay report. The potential backlash follows Virgin Money’s 42% drop in pre-tax profits last November, necessitating a £309m provision for potential defaults.

The PIRC report challenges the bank’s pay policy, which received 98% approval just last year.

Amidst the financial scrutiny, Virgin Money defended its remuneration decisions. A spokesperson for the bank said: “We’re pleased that all of the other proxy advisors who have published, including Glass Lewis, have recommended that our shareholders vote in favour of all resolutions at the AGM.

“We’re making good progress in executing our strategy with a strong start to the year as we updated through our Q1 trading statement.

“Offering competitive remuneration packages to senior leaders is essential to secure and retain talented individuals, with pay outcomes in line with the Group’s remuneration policy, which was approved by c.98% of shareholders at the February 2023 AGM and benchmarked against industry.”